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Bridge Loan / Short Term Commercial Mortgage Loans
Loan amount ranges from: $1,000,000 - $500,000,000
Marketplace Brokerage offers bridge commercial lending programs for developers, owners and real property investors with whom need short term mortgage financing. Bridge loans last for up to three years. For transitional real estate loan assets with experienced borrowers where quick financing is desired.
Typical Commercial Real Estate Bridge Loans are for acquisition, development or rehabilitation financing for transitional assets with upside potential with an emphasis on existing or rehab properties.
Eligible Property Types: Commercial real estate properties typically with value added opportunities for bridge loans and hard money loans including multifamily loans, anchored retail loans, multi-tenant industrial loans, multi-tenant office loans, hotel loans, and manufactured housing loans.
| Maximum loan to cost: |
80% to 92% of cost; may be funded in one or more advances. |
| Maximum loan to value: |
65% to 80% of the real estate completed property value |
| Minimum DSCR: |
1.0DCR provided borrower has funded adequate interest reserves. |
| Holdbacks: |
In some cases the loan will be made at the future value but a portion will be "held back" until improvements are completed or vacancy is decreased or some other value-add goal is met. |
| Security: |
First Mortgage on the property. |
| Term: |
1 to 3 years with extensions as necessary, up to 60 months. |
| Amortization: |
Interest only available |
| Prepayment terms: |
No prepayment penalties |
| Projects: |
All commercial property types can be financed. Developer and contractor must have experience at this type and scale of development. |
| Recourse: |
Yes, with exceptions |
| Closing costs: |
Borrowers are responsible for all due diligence and closings costs (e.g. Appraisal, Phase 1 Environmental, site inspection, title, etc) |
| Bridge Loans under |
$3M - costs range from $6,000 to $12,000 |
| For bridge loans over |
$3M - costs can be $20,000 or more |
Types of Apartment Loan programs range from all types of apartment funds including Fannie Mae, Freddie Mac, FHA/HUD, Conduit, private and portfolio commercial loan programs. Apartment Financing permanent and variable interest rate loans with funding terms from 5 to 20 years for stabilized and unstable investment properties. Bridge and construction multifamily loans have short term bridge loans to help in creating real estate cash value in your property.
Loan equity and mezzanine/2nd T.D. loans offer cash equity to help add property value over a shorter length of investment time.
Maximum loan dollars on apartments are generally at 75% to 80% of the as is value with interest rates fixed over the 10 year US Treasury bill rate plus spread depending on the investment grade or quality. Occupancy Levels are looked upon favorably between 80% to 90% unless rehab is requested.
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